Thursday, January 12, 2012

"Ding will reject the offer from Navis, and instead put in a rival proposal to create liquidity in the market place,"a person familiar with the company said yesterday.

It was utterly nonsense.

Think about it.

Fact: The talk with Navis was purely informal.

Fact: The talk happenedFEW MONTHS ago.

And if that's the case, why on earth is XDL making such a big fuss over it? And worst still Ding is said to reject the offer from Navis.

How?

If he had NO intention to accept the offer, an offer made few months ago, why make such a big fuss? Heck, XDL was even suspended so that it can make this announcement of 'no substance' (Yeah, in my flawed opinion, there's no substance. It was an informal discussion and no price was even mentioned! )

But note the snakey spin put on it.

"put in a rival proposal to create liquidity in the market place,"

Oh yeah, with such a statement, XDL was going to have to answer to Bursa once more.

And the reply was not shocking at all.

Reference is made to the news article published on page B2 in the Business Times entitled “Xidelang board to meet over Navis’ buyout offer” in particularly the following sentences:-

“…instead put in a rival proposal to create liquidity in the market place”

“It will be a script based reward exercise”

“….Ding will likely propose that XiDelang to undertake a bonus issue and a warrant exercise so that…..”

XDL, after having made due and diligent enquiry with the Board of Directors, major shareholder, namely HongPeng International Holdings Ltd and all such persons reasonably familiar with the above matter, wishes to inform that the Management has merely engaged in exploratory discussions with various professionals to undertake various corporate proposals to enhance value for the Company and shareholders.However, no concrete plans or proposal has been finalised at this juncture.

XDL will make the necessary announcement to Bursa Malaysia Securities Berhad (“Bursa Securities”) in a timely manner in accordance with Bursa Securities Listing Requirements, should there be any further development on this matter.

Exactly!

Another exploratory discussion only.

NO CONCRETE PLANS yet!.

Is this talking to air or talking air?

I dunno.

I guess when the boss is frustrated with the stock lousy performance in the exchange, anything is possible!

And best of all, BTimes carried yet another article on XDL.

Yeah..... OMG!

Xidelang in talks to boost shareholder value

By Francis Fernandez Published: 2012/01/12

KUALA LUMPUR: Xidelang Holdings Ltd, China's second largest maker of running and skateboard shoes, says it's in exploratory discussions with various professionals to undertake various corporate proposals to enhance shareholder value.

The company said this in a statement to Bursa Malaysia yesterday, in response to an article in Business Times which stated that the mainland-based company is considering a script-based exercise to reward its shareholders.

Business Times had reported that Xidelang could introduce a bonus-cum-warrants exercise so that shareholders, who did not directly benefit from Xidelang's growing business, will be rewarded in the market place.

Xidelang's share price had fallen by as much as 35 per cent last year to 29.5 sen a share.

This year, however, the shares are up by as much as 25 per cent to close the trading day at 38 sen.

Up to the nine months ended September 30 2011, Xidelang's pre-tax profit stood at RM84.52 million, while for the 12 months of 2010, the company's pre-tax profit stood at RM106.78 million.

As it stands, Xidelang is the only China-based company traded here with a consistent dividend policy in place.

Xidelang paid out a 1.5 sen dividend in 2010 and a one-sen dividend the following year, giving shareholders a 12-month dividend yield of 2.63 per cent a year.

The company also has about RM134 million in cash, while its book value per share comes in at just under 60 sen.

Xidelang is the third China-based company to be listed on Bursa Malaysia.\

One huge article just to say "Xidelang Holdings Ltd, China's second largest maker of running and skateboard shoes, says it's in exploratory discussions with various professionals to undertake various corporate proposals to enhance shareholder value".

1. A message board for Samgoss to post comments of hatred against other bloggers or to post attacks against others.

( Ah Sam still so much hatred in you? Check your blood pressure, Sam. Something is not right)

2. This is not a site for you to gloat.

( Hey, you have your own blog, isn't it? Why need to post it here? Nobody reading your blog, Sam? A little advice again. Stop living yourself full of hatred. It's only the stock market. Stock market had so many different opinions and views (and ins't this the very reason stocks go up and they go down and they go sideways? ) and because they have so many different views, it's extremely bad for your health to go hating and attacking everyone whose view different from yours)

And as usual, you can carry on hating me for not publishing those comments. It's ok for me but I do pray for your health.

XDL didn paid a huge amount of dividend - but to the owner of the shares before listing. The dividend shrinked after listing and now it is heard no more, living empty voice of "XDL paid XXX dividend --- LAST YEAR".

Shareholder need to reemphasize the asset especially the cash existence and no hidden off balance sheet liabilities.External auditor BDO and 2 Malaysian director better make sure this is right....Just remind me of transmile by chance, but i doubt this is one, but better be conservative at this age of time.

solomon: And then ... the company bosss claims he' frustrated with the lousy stock performance.

Why?

Why no one wants to buy/invest in the company?

And then....

lol....

the series of Air Talking starts.

1. Informal discussions that happened few months ago was highlighted to the market. The no concrete offer and no pricing was sold to the market. Heck, a suspension of the stock trading even took place.

2. To blow point 1 into the orbit, the boss isn't even interested in selling.

So why the suspension of the stock trading then? To disclose a non event?

Or is it an attempt to draw interest in the stock that had been performing poorly in the market?

3. And then... they continued to beat around the bush and spun out a new twist “…instead put in a rival proposal to create liquidity in the market place”

“It will be a script based reward exercise”

And that was quickly dismissed as "exploratory discussions".

well... one can talk and talk and talk and talk when they hold "exploratory discussions"....

ks: I could be wrong but I think I would rather be cautious over relying on this indicator as a yardstick.

Main reason? The fundamentals of the shipping industry had really changed somewhat. Right now, the main issue within the industry is over capicity. Too many ships had been built. And as a result, in my flawed opinion, the value of the index versus then it's not quite the same.

Having said that, if one still reckons that there is value in the index and the charts, one would have noticed that last year, the index also collapsed at the beginning of the year. So one could argue that perhaps the new trend is that one sees a much weaker BDI at the start of year.